16 FAQs on MODIFIED INTEREST SUBVENTION SCHEME FOR SHORT TERM LOANS FOR AGRICULTURE AND ALLIED ACTIVITIES AVAILED THROUGH KISSAN CREDIT CARD (KCC) – RBI Cir 06.08.2024
1) The interest subvention shall be available to which lending institutions,
1)Public Sector Banks (PSBs),
2) Private Sector Banks, (for loans given by their rural and semi-urban branches only)
3) Small Finance Banks (SFBs),
4) computerized Primary Agriculture Cooperative Societies (PACS) ceded with Scheduled Commercial Banks (SCBs), on use of their own resources.
2) What is the maximum amount of Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC), to be eligible for interest subvention?
Ans Rs.3 lac.
3) In respect of those farmers who are engaged in activities related to animal husbandry, dairy, fisheries, bee keeping etc. what is the maximum amount of Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC), to be eligible for interest subvention?
Ans Rs.2 lac
4) What is the rate of interest that will be charged to borrower by lenders for Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC), to be eligible for interest subvention?
Ans 7% p.a.
5) What is rate of subvention available to banks for eligible Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC)?
Ans 1.5% p.a.
6) For eligible Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC), the interest subvention will be calculated on the loan amount from which date to which date?
Ans Date of disbursement/drawal up to the date of actual repayment of the loan by the farmer or up to the due date of the loan fixed by the banks, whichever is earlier
7) For eligible Short Term Loans for Agriculture and Allied Activities availed through Kisan Credit Card (KCC), the interest subvention will be available for a maximum period of?
Ans one year
8) What is the rate of additional interest subvention provided to those farmers who are repaying in time?
Ans 3%
9) If a farmer is eligible for interest subsidy as well as incentive for timely repayment (prompt repayment), what shall be effective rate of interest?
Ans 4%
10) The additional interest subvention for timely repayment is not available to what type of farmers?
Ans Those who repay their loans after one year of availing such loans.
11) A farmer has availed KCC of Rs.3 lac, out of which crop loan is Rs.50000 and dairy loan is Rs.2.50 lac. Interest subvention shall be available on how much amount?
Ans Rs.2.50 lac
12) The benefit of interest subvention under KCC will be available to small and marginal farmers for what further period, against negotiable warehouse receipts on the produce stored in warehouses accredited with Warehousing Development Regulatory Authority (WDRA)?
Ans Up to six months
13) To provide relief to farmers affected by natural calamities, subvention will be available to banks for which period on the restructured loan amount?
Ans 1st year
14) To provide relief to farmers affected due to severe natural calamities, subvention will be made available to banks for what period on the restructured loan amount.
Ans 1st three years/entire period (subject to a maximum of five years)
15) To ensure hassle-free benefits to farmers under the Modified Interest Subvention Scheme, what type of linkage be mandatory for availing interest subvention benefit?
Ans Aadhar
16) Banks are to capture the requisite category wise granular data of individual farmer beneficiaries under the Modified Interest Subvention Scheme and report the same on which portal to settle the audited MISS claims?
Ans Kisan Rin Portal (KRP)